Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Shopify Stock Hits New High: What Investors Need to Know

Shares of Shopify (SHOP - Free Report) surged to a new all-time on Monday. But with no breaking news to speak of, it might be time to take a look at what exactly the young Canadian company does that has investors hopping on board.

Shopify has been able to fly under the radar as a growing e-commerce power, with a market cap of over $11.6 billion, because its presence and growing ubiquity is not easily known to online shoppers. In early August, Shopify announced that its cloud-based platform now helps run e-commerce sites for over 500,000 merchants.

The Ottawa, Ontario-headquartered firm, which began as a company that sold snowboard equipment online, now helps small and medium-size businesses start and run a sales-based website without any coding or technical computer skills.

The company’s 2016 revenues jumped over 100% year-over-year to $390 million, and Shopify reported $151.7 million in second-quarter sales in 2017, which marked a 75% increase.

The e-commerce company now projects full-year 2017 revenues in the range of $642 million to $648 million. Shopify also narrowed its GAAP operating loss guidance to between $62 million and $66 million.

The idea is to give BuzzFeed editors the ability to easily search for companies or products that they then can produce content about, in order to help the e-commerce merchants boost sales. Shopify’s clients simply pay a commission to BuzzFeed if it is determined that a sale was made based on a post.

The company also recently introduced its first in-house designed hardware. Shopify merchants that have a brick-and-mortar store, or sell products at physical locations, can purchase the company’s new credit card processor called the “Chip & Swipe Reader.” The hope is to give merchants the ability to adapt in the ever-changing retail environment by offering this essential piece of fintech.

On top of that, Shopify now offers clients more robust data about everything from users to financials. Merchants are able to view a plethora of sales and customer data, for both online and in-person sales, in one online dashboard.

The platform can help small businesses answer big questions, such as where their website traffic is coming from, top performing sales days and products, and more. Shopify’s hope is to give its customers the ability to take action based on a variety of metrics.

Bottom Line

Shopify makes e-commerce easier for small and medium size businesses, at a time when online shopping and searching has become almost paramount to success. Similar to WordPress, which reportedly helps power almost 25% of websites on the internet, Shopify allows users to pick from an array of design templates and 1,800 apps to set up a relatively easy to use e-commerce site.

Shopify now boasts that its merchants have sold more than $40 billion worth of products using its platforms. And barring an unforeseen pivot, e-commerce sales will only continue to grow.

Shares of Shopify skyrocketed from $41.63 a share a year ago to hit a new all-time high of $118.60 a share on Monday.

More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>

Resources

Client Support

Follow Us

Zacks Moblie App

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2018 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2017. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.